Coinbase vs SEC: Latest SEC Update in Coinbase Mandamus Case Submitted to Third Circuit
The post Coinbase vs SEC: Latest SEC Update in Coinbase Mandamus Case Submitted to Third Circuit appeared first on Coinpedia Fintech News
Coinbase’s Chief Legal Officer, Paul Grewal, disclosed the newest development in the ongoing legal discourse between the US’s largest exchange and the Securities and Exchange Commission (SEC). The SEC recently communicated to the Third Circuit regarding Coinbase’s rulemaking petition, a move seen as progress, albeit lacking details.
Awaiting Clear Answers
Grewal expressed concerns over the vagueness of the SEC’s update while showing gratitude to the court for nudging the SEC to action. He emphasized the importance of a comprehensive response to Coinbase’s petition, underlining the necessity to end the era of prolonged uncertainty. He also urged the SEC, given its active stance on crypto regulations, to provide a decision-making timeline.
This legal back-and-forth began in April 2023, when Coinbase filed a petition urging the SEC to respond to a previous rulemaking appeal from 2022. The court instructed the SEC to reveal the petition’s status by October 2023. Adhering to this, the SEC announced on October 10, 2023, that their staff had made a recommendation concerning Coinbase’s petition.
A Broader Context
The scenario unfolds amidst increasing scrutiny over Coinbase’s crypto classification, sparking new legal hurdles. Recently, a coalition of state authorities and legal experts allied with federal securities regulators, arguing that Coinbase might have overstepped legal bounds by operating an unregistered exchange.
Many view the SEC’s legal stance against Coinbase as a critical juncture for digital currencies’ future, criticizing the SEC for rule-setting through enforcement actions rather than framing clear, new laws. Adding to the discussion, three newly submitted amicus briefs argue against the distinctiveness of cryptocurrencies, supporting the SEC’s authority to regulate digital assets under existing laws.
The unfolding legal narrative between Coinbase and the SEC is closely watched as stakeholders await clear regulatory guidelines in the rapidly evolving crypto sector.
